MONTVALE, N.J., April 24, 2025 (GLOBE NEWSWIRE) -- Balchem Corporation (NASDAQ: BCPC) reported today financial results for its 2025 fiscal first quarter ended March 31, 2025. For the quarter, the Company reported net sales of $250.5 million, net earnings of $37.1 million, adjusted EBITDA of $66.3 million, and free cash flowof $31.0 million. Ted Harris, Chairman, President and CEO of Balchem said, "The first quarter was an excellent start to the year for Balchem, with sales and earnings growth in all three s ...

Core Insights - Balchem Corporation published its 2024 Sustainability Report, highlighting its commitment to sustainability initiatives aimed at improving health and well-being globally [1][2] Sustainability Goals - The company aims to reduce greenhouse gas emissions and water usage by 25% by 2030, with a notable achievement of a 32% reduction in GHG emissions from the 2020 baseline in 2024 [2][4] - Water withdrawal was reduced by 15% in 2024 compared to the 2020 baseline, indicating progress towards the water usage reduction goal [4] Business Segments - Balchem operates in three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products, providing specialized ingredients for various industries [3] Alignment with Global Initiatives - The company celebrated its fourth anniversary of commitment to the UN Global Compact, aligning with principles on human rights, labor, environment, and anti-corruption [4] - Approximately 70% of Balchem's revenue supports UN Sustainable Development Goals, particularly SDG 2 (zero hunger), SDG 3 (good health and well-being), and SDG 12 (responsible consumption and production) [4] Employee Safety and Product Quality - In 2024, Balchem improved its Total Recordable Incident Rate (TRIR) to 0.57 and Lost Time Incident Rate (LTIR) to 0.21, reflecting enhanced safety measures and training [4]

Core Viewpoint - Blachem (BCPC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Blachem is projected to earn $5.10 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 29.8% [8]. - Over the past three months, the Zacks Consensus Estimate for Blachem has risen by 9.8% [8]. Investment Implications - The upgrade to Zacks Rank 1 suggests that Blachem's underlying business is improving, which could lead to increased buying pressure and a rise in stock price [5][10]. - The Zacks Rank system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a 'Strong Buy' rating, indicating Blachem's strong position among its peers [9][10].

Company Overview - Balchem Corporation develops, manufactures, and markets specialty ingredients aimed at improving health and well-being across various industries globally [4] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [4] - The Human Nutrition & Health segment focuses on customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [4] - The Animal Nutrition & Health segment supplies products to various animal health markets [4] - Specialty Products offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the agricultural market [4] Upcoming Events - A conference call is scheduled for April 24, 2025, at 11:00 AM Eastern Time to review the first quarter 2025 results [1] - First quarter results will be published before the market opens on the same day [2] - The conference call will be accessible via toll-free and local dial-in numbers, with a replay available for a limited time after the call [3]

Company Overview - Balchem Corporation is a global specialty ingredient manufacturer focused on health and nutrition markets [2] - The company operates through three business segments: Human Nutrition & Health, Animal Nutrition & Health, and Specialty Products [2] - The Human Nutrition & Health segment provides customized food and beverage ingredient systems and key nutrients for food, supplement, and pharmaceutical applications [2] - The Animal Nutrition & Health segment supplies products to various animal health markets [2] - Specialty Products offers specialty-packaged chemicals for healthcare and other industries, as well as chelated minerals for the agricultural market [2] Upcoming Events - Balchem Corporation will participate in the BNP Paribas Exane 13th Consumer Ingredients Conference on March 11, 2025 [1] - Key executives attending the conference include Ted Harris (Chairman, CEO, and President), Martin Bengtsson (CFO), and Allison Baurichter (Senior Director Investor Relations) [1]

Company Overview - Balchem Corporation (NASDAQ: BCPC) specializes in performance ingredients and products that significantly contribute to various fields including nutrition, food, pharmaceuticals, animal health, medical device sterilization, plant nutrition, and industrial applications [1] Research Principles - Grassroots Trading focuses on providing objective, unbiased, and balanced research backed by solid data, avoiding emotional influences or preferences for companies [2] - The research emphasizes small- to mid-cap companies while also identifying potential opportunities in large- and mega-cap companies to cover the dynamic equity markets comprehensively [2]

Financial Performance - Balchem Corporation reported net sales of $953.684 million for the year ended December 31, 2024, an increase from $922.439 million in 2023, representing a growth of approximately 3.5%[186]. - The company's gross margin improved to $336.206 million in 2024, compared to $302.056 million in 2023, reflecting a gross margin percentage increase from 32.7% to 35.2%[187]. - Net earnings for 2024 were $128.475 million, up from $108.543 million in 2023, indicating a year-over-year increase of about 18.4%[187]. - Total net sales for the company in 2024 were $953.7 million, compared to $922.4 million in 2023, indicating an overall increase of 3.4%[290]. - Basic net earnings per common share increased to $3.97 in 2024 from $3.38 in 2023, reflecting a growth of about 17.4%[187]. - The company reported a net cash provided by operating activities of $181,999 thousand in 2024, slightly down from $183,761 thousand in 2023[195]. - Total dividends paid increased to $28,470 thousand in 2024, up from $25,542 thousand in 2023, reflecting a dividend of $0.87 per share[195]. Segment Performance - Human Nutrition and Health segment net sales reached $600.3 million for the year ended December 31, 2024, up from $550.8 million in 2023, representing a growth of 9.9%[290]. - Animal Nutrition and Health segment net sales were $214.7 million in 2024, a decrease from $238.3 million in 2023, reflecting a decline of 9.9%[290]. - Specialty Products segment net sales increased to $132.7 million in 2024 from $126.0 million in 2023, marking a growth of 5.3%[290]. - Gross margin for the Human Nutrition and Health segment improved to $221.8 million in 2024, up from $184.2 million in 2023, reflecting a margin increase of 20.5%[290]. - Earnings from operations for the company totaled $182.9 million in 2024, compared to $159.2 million in 2023, representing a growth of 14.9%[290]. Research and Development - Research and development expenses for the years ended December 31, 2024, 2023, and 2022 were approximately $16,793, $15,049, and $12,191, respectively, indicating a consistent investment in product innovation[30]. - The company continues to invest in scientific data and intellectual property to differentiate its products in the Human Nutrition and Health segment[285]. Acquisitions - The Company acquired Cardinal Associates Inc. and its Bergstrom Nutrition business on August 30, 2022, enhancing its portfolio in the Human Nutrition and Health segment[22]. - The acquisition of Kappa Bioscience AS on June 21, 2022, strengthened the Company's expertise in specialty vitamin K2, contributing to growth in the Human Nutrition and Health segment[22]. - The total consideration for the acquisition of Kappa was approximately $302.464 million, with total payments amounting to $333.112 million[237]. - Goodwill arising from the Kappa acquisition was $216.383 million, primarily due to expected synergies and the acquired workforce[238]. Capital Expenditures - Capital expenditures for 2024 were approximately $35,148, with investments aimed at expanding capacity in key product lines and improving process reliability[32]. - The company’s capital expenditures for 2025 are projected to range from $40,000 to $45,000, focusing on energy and water-saving projects and renewable energy opportunities[32]. Employee Metrics - As of December 31, 2024, the company employed approximately 1,361 full-time employees worldwide, with about 17% covered by collective bargaining agreements[41]. - The turnover rate for salaried employees was 9% in 2024, down from 11% in 2023, while the turnover rate for hourly employees decreased from 29% in 2023 to 21% in 2024[47]. - The recordable injury rate was 0.57, 1.39, and 1.17 for the years 2024, 2023, and 2022, respectively, indicating improvements in workplace safety[43]. Environmental and Sustainability Efforts - The company is committed to reducing greenhouse gas emissions and improving water efficiency as part of its sustainability strategy[49]. - The company is actively engaged in environmental remediation efforts at its Verona, Missouri facility, designated as a Superfund site[37]. - The Company reached a settlement with the EPA and DOJ in December 2024, agreeing to pay a $300 million civil penalty and invest $350 million in community projects[318]. Financial Position - The total assets of Balchem Corporation decreased to $1.575 billion in 2024 from $1.597 billion in 2023, a decline of approximately 1.4%[185]. - The total liabilities decreased significantly from $543.227 million in 2023 to $425.458 million in 2024, a reduction of approximately 21.7%[185]. - The company’s total stockholders' equity increased to $1,149,913 thousand by December 31, 2024, from $1,053,984 thousand in 2023[193]. - The company reported an increase in stock compensation expense to $16,675 thousand in 2024, compared to $16,052 thousand in 2023[195]. Tax and Compliance - The effective tax rate for 2024 was 22.8%, up from 20.9% in 2023, primarily due to an increase in certain foreign taxes[273]. - The total income tax provision for 2024 was $37,978,000, an increase from $28,718,000 in 2023[277]. - The company is in compliance with applicable environmental laws and regulations, with no material effect on its financial condition[39]. Debt and Financing - The total balance outstanding on the 2022 Credit Agreement was $190,000,000 as of December 31, 2024, down from $309,569,000 in 2023[268]. - The unused portion of the revolving loan amounted to $360,000,000 at December 31, 2024[269].

Core Viewpoint - Balchem Corporation is conducting its Q4 2024 earnings conference call to discuss financial results and future expectations [1]. Group 1: Company Overview - The conference call is hosted by Martin Bengtsson, CFO, and Ted Harris, Chairman, President, and CEO [2][3]. - The call includes a forward-looking statement, indicating that expectations may not be met due to various factors [4]. Group 2: Financial Reporting - The call will discuss non-GAAP financial measures, with reconciliations available in the earnings release [5].

Financial Data and Key Metrics Changes - Balchem achieved record full year sales of $954 million, growing 3.4% year-over-year, with record earnings from operations of $183 million, an increase of 14.9% [9] - Record adjusted EBITDA of $250 million, an increase of 8.4% from the prior year [9] - Fourth quarter consolidated revenues were $240 million, up 4.9% year-over-year, with GAAP earnings from operations increasing by 23.8% [17][20] - Adjusted EBITDA for Q4 was $63 million, an increase of 13.4%, with an adjusted EBITDA margin of 26.2%, up 200 basis points from the prior year [18][22] Business Line Data and Key Metrics Changes - Human Nutrition & Health segment generated sales of $147 million, an increase of 6.8% from the prior year, with earnings from operations increasing by 33.9% [25] - Animal Nutrition & Health segment generated quarterly sales of $58 million, a modest increase of 0.3%, with earnings from operations increasing by 7.2% [27] - Specialty Products segment delivered sales of $33 million, an increase of 6%, with earnings from operations increasing by 15.9% [29] Market Data and Key Metrics Changes - The Human Nutrition & Health segment saw strong growth in both nutrients and food ingredients, with nutrient business growing over 5% and food business over 7% in Q4 [42] - The Animal Nutrition & Health segment experienced a recovery in the ruminant market, while the monogastric market remained flat due to ongoing challenges [46][54] Company Strategy and Development Direction - Balchem continues to focus on innovation, launching new products such as K2VITAL DELTA and AminoShure-XL to support growth [11][12] - The company is committed to sustainability goals, aiming to reduce greenhouse gas emissions and water usage by 25% by 2030, with significant progress already reported [14][15] - The company announced a 10% increase in its annual dividend, marking the 16th consecutive year of double-digit growth [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth outlook despite geopolitical and macroeconomic uncertainties, particularly regarding tariffs [33] - The company is optimistic about 2025, expecting continued top and bottom line growth while advancing growth initiatives [34] Other Important Information - Balchem generated strong free cash flow of $147 million, allowing for debt reduction and a net debt leverage ratio of 0.6 times [10] - The effective tax rate for Q4 was 24.5%, an increase from 19.9% in the prior year, primarily due to higher foreign taxes [23] Q&A Session Summary Question: Contribution from nutrients versus food ingredients in Human Nutrition & Health - Management noted strong growth in the nutrients business and a return to healthy growth in food ingredient solutions, with Q4 seeing over 5% growth in nutrients and over 7% in food [42][44] Question: Outlook for Animal Nutrition & Health and European monogastric situation - Management indicated ongoing growth in the ruminant business while the monogastric market remains flat until the European situation is resolved, with a healthy dairy market supporting growth [54][51] Question: Marketing strategies for VitaCholine Pro-Flo and tariff impacts - Management plans to increase marketing efforts for VitaCholine Pro-Flo, emphasizing its benefits for adult health, while monitoring potential tariff impacts, particularly in China and Mexico [60][68] Question: Expectations for margins in 2025 and M&A market update - Management expects margins to remain strong, with potential risks from tariffs and supply chain impacts, while noting an increase in M&A deal flow but not yet a hot market [86][93]

Investor Presentation Q4 2024 1 Safe Harbor Statement 2 • During the course of this presentation, management may make forward-looking statements regarding financial performance and future events. • We will attempt to identify these statements by use of words such as expect, believe, anticipate, intend, and other words that denote future events. You should understand that, even though our forward-looking statements are based on assumptions we believe are reasonable when made, they are still subject to uncert ...